FX.co ★ Offshore Yuan Rebounds on PBoC Support

The offshore yuan firmed to around 6.79 per dollar on Wednesday, rebounding from the previous session as the People's Bank of China signaled a stronger defense of the currency. The central bank set the daily midpoint at 6.8077 per dollar, only 59 pips weaker than Reuters’ estimate. That gap has narrowed sharply from levels above 500 pips seen over the past month, reinforcing expectations of increased official support for the yuan in the face of a stronger US dollar. The greenback remained underpinned by safe-haven flows after Washington launched new military strikes against Iran and revoked a sanctions waiver that had allowed Tehran to export oil to global markets. The yuan has also come under pressure in recent sessions after the World Bank forecast that China’s growth would slow to 4.4% in 2026 and 4.3% in 2027, while Beijing cut its 2026 GDP growth target to 4.5%–5.0%, from around 5% over the past three years.